Fiscal 2022 Universal Registration Document

In Fiscal 2023, the Group will review and adapt its methodology and eligibility analysis as the introduction of the Taxonomy progresses and in light of changes to the regulations, listed activities and technical review criteria. The concept of alignment, provided by the regulation with effect from the next fiscal year, will be addressed by the Group in the next Universal Registration Document.

Eligible activities

Sodexo carried out a review of its On-site Services and Benefits & Rewards Services activities in its most significant countries in terms of revenues and investments (CapEx), with a view to determining which are likely to be eligible within the meaning of the EU Taxonomy and its delegated act for climate change mitigation. No activity was considered eligible for the climate change adaptation objective.

As of today, Food services and Benefits & Rewards services activities are not considered as eligible in the meaning of the EU Taxonomy for the Climate change mitigation objective and only some Facilities Management services provided by Sodexo are included in the EU taxonomy:

• services related to the renovation of workspaces and buildings; installation, maintenance, and repair of energy-related equipment as well as professional services related to energy performance (Taxonomy activities 7.2 Renovation of existing buildings; 7.3 Installation, maintenance and repair of energy efficiency equipment; 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings and 9.3 Professional services related to energy performance of buildings);
• waste management services (Taxonomy activity 5.5 Collection and transport of non-hazardous waste in source segregated fractions);
• transportation services (Taxonomy activities 6.5 Transport by motorbikes, passenger cars and light commercial vehicles and 6.7 Inland passenger water transport).

Based on existing reporting processes, systems and estimates formulated by management and the subsidiaries, less than 2% of consolidated revenues have been identified as eligible in the meaning of the Taxonomy.

Eligible Investments (CapEx)

Sodexo’s eligible CapEx includes:

• CapEx directly associated with its eligible activities; and
• CapEx considered individually eligible, as defined in the Taxonomy Regulation.

The eligible CapEx identified mainly corresponds to increase of right-of-use assets related to leases on buildings and vehicles (Taxonomy activities 7.7 Acquisition and ownership of buildings and 6.5 Transport by motorbikes, passenger cars and light commercial vehicles respectively).

Following this analysis and before specific review of technical screening criteria, eligible CapEx was assessed at about 7% of Total CapEx as defined by Taxonomy Regulation (518 million euros in denominator including additions and scope entrance of tangible and intangible assets as well as right-of-use assets).

Eligible Operational Expenditure (OpEx)

Operational expenditure within the meaning of the Taxonomy Regulation is limited to costs linked to direct non-capitalized research and development, direct maintenance, and renovation of Sodexo assets (including direct cost of employees), and direct short-term leases. Given that the operational expenditure was less than 10% of Group operating expenses, Sodexo has used the exemption provided in the regulation and has not published the performance indicator for eligible OpEx.